Stablecoins locked onto Ethereum layer-2 networks have reached a new all-time high, showcasing rising demand for cryptocurrencies.
The stablecoin supply to all blockchains combined is dominated by Tether (USDT), USD Coin (USDC) and Ethena’s stablecoin, USDe.
As of Dec. 20, the Ethereum blockchain held $13.5 billion worth of stablecoins, according to data from Tie Terminal, a crypto data platform for institutions and Cointelegraph Markets Pro. The overall stablecoin circulation crossed $205 billion, showing the ecosystem’s growing relevance in real-world use cases.
Total stablecoin supply change by blockchain. Source: The TIE Terminal
In a Dec. 15 post to X, Matthias Seidl, the co-founder of block space analytics firm growthepie.xyz, highlighted the growing supply of stablecoins in the Ethereum layer-2 networks as the value of stablecoins on all layer 2s combined neared $12 billion.
Importance of stablecoins in crypto use cases
“One of cryptos killer use-cases in this cycle are Stablecoins. Layer 2s just reached a new ATH in stables locked on them,” he said.
Source: Matthias Seidl
According to DefiLlama, the top of the list is Arbitrum One, with $6.75 billion, followed by Base with $3.56 billion.
Overall, the total stablecoin market capitalization crossed $200 billion on Dec. 11 and continues to climb to new all-time highs amid more than 12 months of growth.
DefiLlama data shows that the total stablecoin market cap has hit its highest point, $202 billion; this excludes algorithmic stablecoins, whose value is maintained through algorithmic mechanisms rather than being pegged to external assets like fiat or gold.
Stablecoin market cap to maintain growth trajectory
Before 2024, the market’s all-time high of $167 billion was reached in March 2022, but it tumbled soon after, dropping to $135 billion before the end of that year.
Stablecoin market capitalization crossed $200 billion on Dec. 11. Source: The TIE Terminal
According to DefiLlama, stablecoin market capitalization has realized steady gains since Nov. 7, 2023, when it was at $123 billion.
Leading the pack of stablecoins has been Tether (USDT). Soon after the new year, USDT had a market cap of $91.7 billion.
Throughout 2024, it has registered steady monthly gains, reaching over $140 billion in market capitalization as of Dec. 19, according to DefiLlama data.
Related: MiCA-compliant stablecoins dominate European market — Kaiko
Circle’s USD Coin (USDC) is also closing out the year strongly, reaching its highest point for 2024 of $42 billion, but still a far cry from its all-time high of $55.8 billion in June 2022.
Stablecoins, going into 2025, could continue to see some solid growth. Arthur Azizov, CEO of B2BINPAY, speculated in a Dec. 17 report that stablecoin could see explosive growth off the back of the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Crypto exchange-traded fund (ETF) issuer Bitwise’s investment chief Matt Hougan and research head Ryan Rasmussen speculated in a Dec. 11 report that stablecoin assets would double to $400 billion next year after the US passes stablecoin legislation.
According to Hougan and Rasmussen, stablecoins are already eating into the global payments and remittances market, and stablecoin assets under management (AUM) tend to expand when the crypto economy expands.
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